Unemployment has created more stress for younger workers as those in the 16 to 24 age group have 19.2% unemployment rate. 2010 college graduates are having a tough time finding jobs – no matter what the degree.
Thus, more young people are living with parents, delaying purchasing or renting.
Number of American households dropped by 1.2 million between 2005 and 2008 even though the population increased by 3.4 million in the 80 largest metro areas. More families are combining households due to economy, including loss of home due to foreclosure
All of the above reasons illustrate why there is an excess supply in apartments and houses for sale – in every market.
Tony Jarrett, Regional Vice President, Allen Tate Company shared the following slide with me. He also provided many of the illustrations used in my blog over the next several days. This illustration shows the percent job losses relative to the peak employment month. I am not so sure about using the numbers but the trend lines for each recession are dramatic.
We are in the 27th month of the 2nd longest recession since the 43-month recession between 1929 and 1933.
Remember new housing starts have to be around 1,200,000 per year to meet the demand of new households being formed.
Pent-up demand is already here!
But will the housing industry as a whole be poised to handle the pent-up demand?
As the economy trends up, how fast will the market turn to a seller’s market?
How will you position your business to be proactive with this wave of change?
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